Not all franchises succeed, and it can be helpful when considering starting or investing in a franchise to learn from those who didn’t make the grade.
This means calling around to failed franchise owners in the area to ask what happened. Often, they’ll be candid and upfront about what didn’t work with their endeavors, and most likely they’ll touch on one of the following problems that lead to the failure of their franchises:
1. Lack of Preparation or Understanding
Starting a franchise can be a fun, exciting process, but it’s also a lot of work. Franchises that fail often have owners or operators that are not entirely prepared for what they’re taking on. Potential franchisees need to do their homework, prepare themselves for the work involved, and learn the business inside and out before taking it on.2. Inadequate Start-Up Capital… read on.